The minister expressed confidence that the government would be able to meet the fiscal deficit target in the current financial year. While India currently remains one of the fastest growing economies in the world, the country has the “potential” to grow at much higher rate, he said.

“The world economy is passing through an uncertain and fragile situation… The silver lining is low international commodities and oil prices which in turn has helped in better macroeconomic situation of the country,” Jaitley added.

The government’s expenditure on salary payments to employees will go up by a whopping over Rs 1 lakh crore on implementation of the commission’s proposals. The increase in the government’s salary bill is expected to weigh in on its efforts to bring down the country’s fiscal deficit.

However, the increase in salaries is expected to boost consumption levels in the country, thereby making a positive contribution to the Indian economy.